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Being a Landlord

1,541 Views | 6 Replies | Last: 3 mo ago by NoahAg
CaptnCarl
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AG
I am looking for advice from those of you who are a landlord. I am looking to rent my current primary residence after we move into a new home in a few months. I am not particularly interested in being a landlord, but have a 3% mortgage rate and do not want to sale. The rent house is just a few blocks from new home.

How do you go about setting rent/cap rate?
How do you market the property for rent?
How do you administer the lease? Do you use a software to send invoices each month?
How about vetting potential renters?

Any other advice?
Captain Winky
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I did the same thing you are doing, and my advice would be to get a relator to help you initially. There are a few on this board. They handled the first three questions and the last for me. There will be a price, but for one month's rent, I feel like they more than paid for themself. They had professional pictures taken and met with prospective tenants, and showed the place, so I didn't have to. I have only had one tenant, so I am very much a rookie, but I think getting help from a professional initially is a good idea.

There are several screening tools out there, and I used TransUnion.

As far as invoices, I don't do anything like that and just have the tenant send me money via Zelle every month.

The key is finding the best tenant possible. I have only had one, and they have been great so far. They pay on time, let me know when things break, and don't really bother me outside of that. They just recently renewed and asked to drop the rent by $100/month, and I gladly accepted. It would cost me money to find another tenant, and there is no guarantee that I could rent it again at a higher rate. I figured the $1200 difference was worth it.

I change the air filters myself so that I can get inside and take a look inside to see how everything looks.
SteveBott
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AG
100% agree with Winky. A newb needs professional help. Might get some help here but you can also google search your area to see who is advertising property management.

A very good friend who owns 4-5 rentals for 30 years said his secret is to list about 100 dollars below market. That way you get more prospects and can be more selective in which tenants you lease to.

Good luck
CaptnCarl
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AG
Great advice. Thank you.
FILO505
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AG
If you're in BCS/Brazos Valley, I'm happy to help you with numbers. Outside of BCS, just give a location and I'm sure we agents on here can set you up with somebody that knows the local market. I've got connections around Texas and in North Carolina, but outside of that I'd be throwing darts and I'm not gonna refer you to somebody just because we share the same brokerage.

I know the Red Pear guys have a broad network across Texas, too, and I believe nationally.
Red Pear Felipe
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Sponsor
AG
Whatever you do, make sure the insurance company knows that the property is now a rental home. As a newbie, I'd highly recommend going with a professional. Once you get it down, then you can definitely do it on your own. My BIL has been renting a property in east Austin that's close to downtown for over 5 years now. I help him run comps but he rents it on his own. He uses Zillow to screen the potential tenants and is very selective. He doesn't have a mortgage on the property so he can wait as long as he can to get the right person. Another thing you can do is buy a good home warranty in case you're not very handy. Just add it to the rental price.
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NoahAg
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Agree with the above responses. We did this right before covid began. Best decision ever. Had a realtor help us with the initial listing and tenant selection. Then handled the next couple lease extensions. Had a realtor help again when original tenants moved out.

Blessed with very good appreciation of the house the last 5 years. Challenge now is figuring out what to do with all the equity we've built up.

Had another rental that I sold last year. I listed it on Zillow and handled the tenant selection myself. Still worked out ok.
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